Are the financial statements of GoTo Foods provided for disclosure purposes only in the Auntie Annes FDD?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 31, 2023 and December 25, 2022. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 105–106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the audited financial statements of GoTo Foods are included as Exhibit A and are provided for disclosure purposes only. GoTo Foods will provide required support and services to Auntie Annes franchisees under a management agreement. However, GoTo Foods is not a party to the Franchise Agreement that Auntie Annes signs with its franchisees. GoTo Foods also does not guarantee Auntie Annes's obligations under the Franchise Agreement or other agreements.
This means that while GoTo Foods' financial statements are available for review, franchisees should understand that GoTo Foods is not legally bound to the franchise agreement itself. Instead, GoTo Foods provides support and services to Auntie Annes under a separate management agreement.
Prospective franchisees should carefully review the financial statements of both GoTo Foods and GoTo Systems, as GoTo Systems guarantees the performance of Auntie Annes's obligations under the Franchise Agreement. Understanding the financial health of both entities can provide a more comprehensive view of the financial backing and support available to the Auntie Annes franchise system.